uclayoda87 (29.24)

Conspiracy Theory or Mission Impossible

14

After President Obama signed the spending bill today, the question came to mind: Is President Obama’s intention to destroy the US economy or is there more to this story?

Is it possible by wasting Trillions of Dollars to actually rid us of our financial obligations? Initially, I did not think this was possible, but then I remembered the mathematical concept of imaginary numbers and the solution presented itself.

I am not sure this is legal or ethical, but then we are dealing with the US government, which has the habit of making the rules as it goes along so let me begin:

First, President Obama needs a very large amount of US Dollars, hidden by a mountain of paperwork, making it impossible to trace where the money is actually going. The recent spending bill provided this.

Next, have the treasury set up a group of fictitious investments companies, which will buy all available gold and gold mining stocks, cornering the market over time.

Next, President Obama signs another massive spending bill (no reason for the spending is needed), which is again funded by the creation of more debt, which is sold to China, Japan and Saudi Arabia.

This last step is repeated multiple times, while the covert purchasing of the world’s gold supply continues.

At some point, China, Japan and Saudi Arabia will no longer be able to purchase the debt. When that happens, the value of the US Dollar relative to gold and other commodities would plummet. The US would no longer be able afford to purchase foreign oil or goods due to the marked weakness of the US Dollar.

Those Countries holding US debt would be holding relatively worthless paper, which could only be used to purchase items from the US, since no other country would trust the US Dollar to hold its value.

The reserve currency for the world would then switch to the Yen or the Euro. Along with gold and the mining stocks, that the fictitious investments companies would be buying, they would also start acquiring the Japanese and European currencies.

Since the Dollar would be made relatively worthless, the US would start pricing US items in the new reserve currency.

The US government would then start purchasing the reserve currency from the fictitious investments companies at very high Dollar prices, further deflating the value of the Dollar. Part of this purchase agreement would allow the fictitious companies to purchase public land, making it appear that these investment companies are actually making land purchases, which are really just designed to take Dollars out of the economy.

The US government would then starts paying its many employees with the new reserve currency.

Since the US government would have grown to a massive size with all the spending bills, its ability to replace the Dollar would be made much easier because of the all the government payment programs (Social Security, Medicare, etc.) that would be in existence.

In the end, the US government would have effectively reneged on its debt responsibilities, while using money obtained from China, Japan and Saudi Arabia to buy gold assets that it would eventually need to purchase the new reserve currency and keep the US economy running. The fictitious investments companies, rich in gold reserves, could continue to purchase foreign oil and independent refineries to create new private energy companies, which would be secretly owned by the US government.

I doubt that the Obama team had this in mind when they pushed for quick passage of the spending bill.

Too bad, because it would suggest that there really is a plan to get us out of this financial mess, even if it is a nefarious scheme.

The ease with which the U.S. government is handing out billions to seemingly one and all reminds me of a Sports Illustrated article I read many years ago when Larry Holmes, the former World Heavyweight Boxing Champion was asked ‘how he dealt with money.’ I remember laughing out loud at his response which was: “Whenever I want a million I just go down to the bank and get one.”

Watch the mining stocks. If these stocks start going way up on little news, look at who is buying. It will probable be China or Saudi Arabia, since the US must keep its buying secret for this plan to work. I own USAGX, which covers most of the big gold mining players.

If you are going to splurge, it is handy to have a pliant bank ready to provide the funds.

In recent days, nearly $60 billion has been slated for spending by Chinese entities on four resource deals, ranging from Chinalco's $19.5 billion investment in Rio Tinto to a $25 billion loans-for-oil tie-up with Russia.

The funding for most of this resource grab is coming from China Development Bank -- a key backer, or the direct financier, in each deal.

CDB is now owned jointly by China's Ministry of Finance and the China Investment Corp., a sovereign-wealth fund. The bank is meant to be moving away from its role as a tool of government policy, with an eventual stock-market listing expected.

Even on a conservative estimate that CDB will end up funding half of the spending plans announced -- around $30 billion. This is a major ramping-up in a short period.

In the whole of 2007, by comparison, CDB increased its lending by $36 billion....

Now look for the Saudi's to start buying mining stocks and the bidding war will begin.

If China is successful in acquiring oil, metals and other commodity assets with the relatively strong Dollars, which they own, then they won't be as hurt by the eventual collapse of the US Dollar and the lack of buying power of the US consumer.

They will begin building products for the biggest potential market in the world - China.

China will run this new world order.

Ironic that China appears to be better at making capitalistic decisions than the US. I think their advantage is that they do not have to be "politically correct". They make decisions which will maximize their wealth, not decisions which will win votes or elections.

China's advance is even more impressive given the burden of poverty, overpopulation, lack of resources and years of communism. Amazing what an American work ethic can achieve.

TOKYO, April 24 (Reuters) - Gold rose 1 percent to a three-week high on Friday after China said its gold reserves had surged by nearly three-quarters since 2003, confirming years of speculation and raising hopes of more purchases to diversify its foreign exchange holdings.